I occasionally exchange posts on a private message board with someone who has actually owned DGPC.
Yesterday, he shared the following information: • He purchased his shares in 2004 at $4 per share. • DGPC has paid dividends. • He believe's that MVC's cost was $5 per share. • A tender offer was made in 2007 at $10 per share and he did tender 2/3rds his shares at that time. • After the 2007 tender offer, the shares were not allowed to trade except through private placement.
If one further assumes that MVC collected dividends and fees averaging $0.2825 per share per year (5.65% of their initial investment of $5.00 per share) during the six years prior to their final sale at $18.28 per share then MVC's claim that they earned a 6-Year IRR of 27.7% is highly credible.
"The press release says the fund is getting $38 million and that the price is a 6.2% premium over the stock price as of 1/31/2010."
The Press release does NOT make that claim, it reads:
"As further described below, the anticipated gross proceeds of approximately $38 million to the Fund resulting from this transaction would exceed the Fund’s current carrying value of its investment in Dakota Growers."
The operative words are: "current carrying value".
I find it fascinating that anyone can quote a credible recent stock price for DGPC. It is my understanding that DGPC has not traded (other than private placements) on any exchange since 2007.